EL PASO, Texas, Nov. 03, 2015 (GLOBE NEWSWIRE) — Western Refining Logistics, LP (NYSE:WNRL) reported third quarter 2015 net income of $16.5 million, or $0.35 per common limited partner unit, which compares to $0.27 per common limited partner unit in the third quarter of 2014. Third quarter 2015 EBITDA was $27.7 million and distributable cash flow was $18.6 million; this compares to $16.1 million and $15.4 million, respectively, for the third quarter of 2014.

“The third quarter was another solid quarter for us,” said WNRL Chief Executive Officer and President Jeff Stevens. “We are pleased with continued growth in the Delaware Basin and Four Corners area, and the strong volumes on the TexNew Mex pipeline. This growth in our logistics business, combined with the solid performance of our wholesale business, allowed us to deliver another great quarter.”

On October 30, the board of directors declared a quarterly cash distribution for the third quarter of 2015 of $0.3825 per unit, or $1.53 per unit on an annualized basis. This distribution represents a 5% increase over the second quarter 2015 distribution of $0.3650 per unit, and a 20% increase over the third quarter 2014 distribution.

On November 2, WNRL announced that it had completed the acquisition of WNR’s remaining portion of the TexNew Mex pipeline for $180 million and the issuance of a new class of WNRL partnership interests to WNR.

Stevens concluded, “We are excited about the TexNew Mex acquisition and the positive impact it will have on our operations, allowing us to grow pipeline volume and significantly increase EBITDA and distributable cash flow. Going forward, we will continue to focus on growing our business, which will allow us to continue to deliver distribution growth for our unitholders.”

Conference Call Information

On Tuesday, November 3, 2015, at 3:00 p.m. ET, WNRL will hold a webcast and conference call to discuss the reported results and provide an update on partnership operations. The webcast can be accessed at Western Refining Logistics, LP’s website, www.wnrl.com. The call can also be heard by dialing (844) 831-3028 or (315) 625-6887, pass code: 43087876. The audio replay will be available two hours after the end of the call through November 17, 2015 by dialing (855) 859-2056 or (404) 537-3406, pass code: 43087876.

About Western Refining Logistics, LP

Western Refining Logistics, LP is principally a fee-based, growth-oriented master limited partnership formed by Western Refining, Inc. (NYSE:WNR) to own, operate, develop and acquire terminals, storage tanks, pipelines and other logistics assets related to the terminalling, transportation and storage of crude oil and refined products. Headquartered in El Paso, Texas, Western Refining Logistics, LP’s assets include approximately 675 miles of pipelines, approximately 8.2 million barrels of active storage capacity, distribution of wholesale petroleum products and crude oil trucking.

More information about Western Refining Logistics, LP is available at www.wnrl.com.

Non-GAAP Financial Measures

In addition to our financial information presented in accordance with U.S. generally accepted accounting principles (GAAP), management utilizes non-GAAP measures to facilitate comparisons of past performance. This press release and supporting schedules include the non-GAAP measures Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Distributable Cash Flow. We believe certain investors and financial analysts use EBITDA and Distributable Cash Flow to evaluate WNRL’s financial performance between periods and to compare WNRL’s performance to certain competitors. We believe certain investors and financial analysts use Distributable Cash Flow to determine the amount of cash generated from the partnership’s operations and available for distribution to its unitholders. These additional financial measures are reconciled from the most directly comparable measures as reported in accordance with GAAP and should be viewed in addition to, and not in lieu of, financial information that we report in accordance with GAAP.

Cautionary Statement on Forward-Looking Statements

This press release contains forward-looking statements. The forward-looking statements reflect WNRL’s current expectation regarding future events, results or outcomes. The forward-looking statements contained herein include statements about: the TexNew Mex acquisition and its positive impact on WNRL’s operations, including its ability to allow WNRL to grow pipeline volume and significantly increase EBITDA and distributable cash flow; and continued growth of WNRL’s business and distributions to its unitholders. These statements are subject to the general risks inherent in WNRL’s business. These expectations may or may not be realized. Some of these expectations may be based upon assumptions or judgments that prove to be incorrect. In addition, WNRL’s business and operations involve numerous risks and uncertainties, many of which are beyond its control, which could result in WNRL’s expectations not being realized, or otherwise materially affect WNRL’s financial condition, results of operations, and cash flows. Additional information relating to the uncertainties affecting WNRL’s business is contained in its filings with the Securities and Exchange Commission to which you are referred. The forward-looking statements are only as of the date made. Except as required by law, WNRL does not undertake any obligation to (and expressly disclaims any obligation to) update any forward-looking statements to reflect events or circumstances after the date such statements were made, or to reflect the occurrence of unanticipated events.

Results of Operations

The following tables set forth WNRL’s summary historical financial and operating data for the periods indicated below:

Three Months Ended

Nine Months Ended

September 30,

September 30,

2015

2014

2015

2014

(Unaudited)

(In thousands, except per unit data)

Revenues:

Fee based:

Affiliate

$

51,920

$

45,016

$

143,460

$

129,043

Third-party

787

686

2,089

2,044

Sales based:

Affiliate

158,848

234,485

456,195

660,763

Third-party

462,924

635,532

1,414,632

1,958,816

Total revenues

674,479

915,719

2,016,376

2,750,666

Operating costs and expenses:

Cost of products sold:

Affiliate

156,388

234,485

449,087

660,763

Third-party

445,169

616,757

1,358,197

1,901,022

Operating and maintenance expenses

39,705

37,112

112,697

107,769

General and administrative expenses

5,563

6,388

17,744

17,276

Gain on disposal of assets, net

(13

)

(34

)

(257

)

(16

)

Depreciation and amortization

4,983

4,292

14,458

12,898

Total operating costs and expenses

651,795

899,000

1,951,926

2,699,712

Operating income

22,684

16,719

64,450

50,954

Other income (expense):

Interest income

—

4

—

4

Interest expense and other financing costs

(6,204

)

(366

)

(16,416

)

(1,088

)

Other, net

16

28

51

103

Net income before income taxes

16,496

16,385

48,085

49,973

Provision for income taxes

(3

)

(135

)

(354

)

(339

)

Net income

16,493

16,250

47,731

49,634

Net income attributable to General Partner

—

3,985

—

15,461

Net income attributable to limited partners

$

16,493

$

12,265

$

47,731

$

34,173

Net income per limited partner unit:

Common – basic

$

0.35

$

0.27

$

1.01

$

0.75

Common – diluted

0.35

0.27

1.01

0.75

Subordinated – basic and diluted

0.35

0.27

1.01

0.75

Weighted average limited partner units outstanding:

Common – basic

24,017

22,811

24,006

22,811

Common – diluted

24,024

22,883

24,024

22,853

Subordinated – basic and diluted

22,811

22,811

22,811

22,811

Three Months Ended

Nine Months Ended

September 30,

September 30,

2015

2014

2015

2014

(Unaudited)

(In thousands)

Cash Flow Data

Net cash provided by (used in):

Operating activities

$

17,686

$

22,943

$

65,867

$

64,992

Investing activities

(7,446

)

(9,199

)

(23,568

)

(31,301

)

Financing activities

(17,418

)

(14,030

)

(25,225

)

(38,583

)

Capital expenditures

7,609

5,248

24,021

17,335

Other Data

EBITDA (1)

$

27,683

$

16,093

$

78,959

$

45,627

Distributable cash flow (1)

18,648

15,369

57,857

44,833

Balance Sheet Data (at end of period)

Cash and cash equivalents

$

71,372

$

79,112

Property, plant and equipment, net

191,104

183,036

Total assets

412,033

308,907

Total liabilities

440,091

16,536

Division equity

—

62,242

Partners’ capital

(28,058

)

230,129

Total liabilities, division equity and partners’ capital

412,033

308,907

(1) We define EBITDA as earnings before interest expense and other financing costs, provision for income taxes and depreciation and amortization. We define Distributable Cash Flow as EBITDA plus the change in deferred revenues, less net cash interest paid, income taxes paid and maintenance capital expenditures.

EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:

EBITDA does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;

EBITDA does not reflect the interest expense or the cash requirements necessary to service interest or principal payments on our debt;

EBITDA does not reflect changes in, or cash requirements for, our working capital needs; and

EBITDA, as we calculate it, may differ from the EBITDA calculations of our affiliates or other companies in our industry, thereby limiting its usefulness as a comparative measure.

EBITDA and Distributable Cash Flow are used as supplemental financial measures by management and by external users of our financial statements, such as investors and commercial banks, to assess:

our operating performance as compared to those of other companies in the midstream energy industry, without regard to financial methods, historical cost basis or capital structure;

the ability of our assets to generate sufficient cash to make distributions to our unitholders;

our ability to incur and service debt and fund capital expenditures; and

the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.

Distributable Cash Flow is also a quantitative standard used by the investment community with respect to publicly traded partnerships because the value of a partnership unit is, in part, measured by its yield. Yield is based on the amount of cash distributions a partnership can pay to a unitholder.

We believe that the presentation of these non-GAAP measures provides useful information to investors in assessing our financial condition and results of operations. The GAAP measure most directly comparable to EBITDA and Distributable Cash Flow is net income attributable to limited partners. These non-GAAP measures should not be considered as alternatives to net income or any other measure of financial performance presented in accordance with GAAP. EBITDA excludes some, but not all, items that affect net income attributable to limited partners. These non-GAAP measures may vary from those of other companies. As a result, EBITDA and Distributable Cash Flow as presented herein may not be comparable to similarly titled measures of other companies. The calculation of EBITDA and Distributable Cash Flow includes the results of operations for the wholesale segment for the period subsequent to the Wholesale Acquisition through September 30, 2015.

The following table reconciles net income attributable to limited partners to EBITDA for the periods presented and Distributable Cash Flow for the three and nine months ended September 30, 2015 and 2014, respectively. The reconciliation of Distributable Cash Flow to EBITDA for the three and nine months ended September 30, 2015, includes interest accruals related to the 2023 WNRL Senior Notes. Prior to the second quarter of 2015, we calculated Distributable Cash Flows using cash interest paid.

Three Months Ended

Nine Months Ended

September 30,

September 30,

2015

2014

2015

2014

(Unaudited)

(In thousands)

Net income attributable to limited partners

$

16,493

$

12,265

$

47,731

$

34,173

Interest expense and other financing costs

6,204

362

16,416

1,073

Provision for income taxes

3

135

354

339

Depreciation and amortization

4,983

3,331

14,458

10,042

EBITDA

27,683

16,093

78,959

45,627

Change in deferred revenues

(218

)

848

2,229

3,422

Interest expense

(5,858

)

(230

)

(15,491

)

(683

)

Income taxes paid

(156

)

(1

)

(737

)

(1

)

Maintenance capital expenditures

(2,803

)

(1,341

)

(7,885

)

(3,532

)

Other

—

—

782

—

Distributable cash flow

$

18,648

$

15,369

$

57,857

$

44,833

Logistics Segment

Three Months Ended

Nine Months Ended

September 30,

September 30,

2015

2014

2015

2014

(Unaudited)

(In thousands, except key operating statistics)

Statement of Operations Data:

Fee based revenues:

Affiliate

$

40,478

$

34,914

$

110,129

$

101,294

Third-party

787

686

2,089

2,044

Total revenues

41,265

35,600

112,218

103,338

Operating costs and expenses:

Operating and maintenance expenses

19,841

17,034

55,162

51,123

General and administrative expenses

303

626

2,168

1,769

Loss on disposal of assets, net

124

—

124

—

Depreciation and amortization

3,837

3,331

11,128

10,042

Total operating costs and expenses

24,105

20,991

68,582

62,934

Operating income

$

17,160

$

14,609

$

43,636

$

40,404

Key Operating Statistics:

Pipeline and gathering:

Mainline movements (bpd) (1):

Permian/Delaware Basin system

56,745

27,382

45,784

22,351

Four Corners system

66,602

38,623

54,719

38,483

Gathering (truck offloading) (bpd):

Permian/Delaware Basin system

25,961

24,250

24,207

24,205

Four Corners system

16,487

10,979

13,387

11,187

Pipeline Gathering and Injection system (bpd):

Permian/Delaware Basin system

8,458

1,473

5,353

1,528

Four Corners system

28,841

19,396

23,859

20,822

Tank storage capacity (bbls) (2)

651,545

619,706

630,761

592,131

Terminalling, transportation and storage:

Shipments into and out of storage (bpd) (includes asphalt)

408,787

389,773

396,506

379,261

Terminal storage capacity (bbls) (2)

7,420,754

7,355,432

7,464,236

7,355,432

(1) Some barrels of crude oil in route to Western’s Gallup refinery and Permian/Delaware Basin are transported on more than one of our mainlines. Mainline movements for the Four Corners and Delaware Basin systems include each barrel transported on each mainline. During the second quarter, we began shipping crude oil from the Four Corners system, through a pipeline connection, to the Permian/Delaware system.

Fuel gallons sold to retail (included in fuel gallons sold above) (in thousands)

81,538

68,064

235,824

194,753

Fuel margin per gallon (2)

$

0.029

$

0.019

$

0.031

$

0.021

Lubricant gallons sold (in thousands)

2,998

3,071

8,969

9,163

Lubricant margin per gallon (3)

$

0.70

$

0.83

$

0.71

$

0.81

Crude oil trucking volume (bpd)

49,620

39,473

47,245

34,610

Average crude oil revenue per barrel

$

2.51

$

2.78

$

2.58

$

2.94

(1) All wholesale fee based revenues are generated through fees charged to Western’s refining segment for truck transportation and delivery of crude oil. Affiliate and third-party sales based revenues result from sales of refined products to Western and third-party customers at a delivered price that includes charges for product transportation.

(2) Fuel margin per gallon is a measurement calculated by dividing the difference between fuel sales, net of transportation charges, and cost of fuel sales for our wholesale segment by the number of gallons sold. Fuel margin per gallon is a measure frequently used in the petroleum products wholesale industry to measure operating results related to fuel sales.

(3) Lubricant margin per gallon is a measurement calculated by dividing the difference between lubricant sales, net of transportation charges, and lubricant cost of products sold by the number of gallons sold. Lubricant margin is a measure frequently used in the petroleum products wholesale industry to measure operating results related to lubricant sales.